The proposed merger of Zee Entertainment Enterprises with Sony Picture Networks India is at a " very important juncture", and its completion is "in the interest of all stakeholders", CNBC TV-18 reported Punit Goenka, the company's embattled MD and CEO, as saying in a letter to the employees on July 17.
The completion of the Zee-Sony merger has been "my top priority", said Goenka, who, along with his father and company founder Subhash Chandra, has been barred by the Securities and Exchange Board of India (SEBI) from holding key management positions.
"Today, as we have reached at a very advanced stage of the merger completion process, I seek your commitment and promise; that no matter what, you will remain focused towards your roles and responsibilities in this company," he said.
Earlier in the day, Zee Entertainment issued a statement saying that the company has formed an interim committee to oversee its operations in the absence of Goenka.
"Since the (SEBI) order restricts Goenka from holding the position as director or key managerial position in a listed company, the Board of the Company has constituted an Interim Committee of senior executives to ensure smooth operations of the company," it said.
SEBI had, in an interim order on June 12, stated that Subhash Chandra and Goenka had allegedly "abused their positions" for personal financial gains. It noted that the Mumbai-based media house had allegedly faked the recovery of loans to cover private financing deals by its founder Subhash Chandra.
The regulator further alleged that the duo engaged in the alienation of assets belonging to Zee Entertainment and other listed companies of the Essel Group, with the aim of benefiting their associate entities.
Goenka, in the letter to Zee employees, said the difficulties that he is currently facing are at the promoter family level, and those issues should not considered as problems of the company, the CNBC TV-18 report added.
“The important point to be focused upon is not what is happening to me, but on what is happening, or should happen to our great company; which we have together built over the last 30 years and more. The important point to be excited about is the fact that this company is all set to merge with the most prestigious global media and entertainment brand – Sony," he was quoted as saying.
In the trading session on July 17, Zee Entertainment's scrip settled at Rs 229.65 on the BSE, which is 6.27 percent higher than the previous day's close.
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